Liquor retailers in WA's north have applied to have alcohol restrictions relaxed, saying they have created a lucrative black market and are bad for business.

The only take-away alcohol residents of both towns can currently buy is light-strength beer.

The restrictions were introduced in Fitzroy Crossing 2007 and in Halls Creek two years later as a result of campaigns by local Aboriginal women who were appalled by the high rates of binge drinking.

But the rules remain contentious, with some arguing the restrictions are bad for the tourism industry, have caused hundreds of people to move away and have spawned a black market alcohol trade that is seeing locals pay up to $150 for a carton of beer.

Council 'relatively neutral' but concedes town divided

The president of the Shire of Derby-West Kimberley, which covers the town of Fitzroy Crossing, said the community remained divided on the issue.

"If you talk to some they'll tell you the restrictions are good, and if you talk to others it's not so good," Elsia Archer said.

"There are a lot of people bringing in illegal alcohol and selling it at high prices, and I know the police have been confiscating liquor that comes in like that... and there are people who say there's still domestic violence.

"But there are also people who say they've been a really good thing."

In 2007 the shire's position was to support "sensible" liquor restrictions.

Ms Archer said the application to reduce the restrictions was debated at last week's council meeting and the decision was made to retain that relatively neutral position.

She said there were conflicting views around the table, so it was decided to leave it up to the community to work out what those "sensible restrictions" should be.

Both the application to change the restrictions and the resulting submissions are confidential and the Director of Liquor Licensing has declined to comment.